Century Considers Loan To Fund Water System Improvements

April 22, 2009

The Town of Century will apply for a loan for water systems improvements in the State Line Road, Highway 4A and Backwoods Road areas, but the town is still hoping to receive a grant to fund the nearly $2 million project.

Dale Long of Fabre Engineer told the council that his firm could prepare the paperwork necessary to apply for the state loan for a fee not to exceed $10,000.

The council is considering an SRF loan because the fund often offers a low interest rate, including sometimes a negative interest rate. Plus, Long said, with federal stimulus money, it is possible that the loan could actually turn into a grant.

Applying for the loan program does not obligate the council to actually accept the loan if their application is approved. Without applying for the loan, the council would not know if the loan might actually be a grant or a negative interest loan.

“The upside of this is you haven’t signed a dotted line yet,” Long said. “But if you don’t file, you are not going to know.”

The council has other funding options that might pay for the water system improvements. One is an approved loan from the federal government, and the other is a stimulus money request by Congressman Jeff Miller for $1.19 million.

“We’ve still got high hopes that Congessman Miller will come through for us,” Century Mayor Freddie McCall.

The town will advertise a public hearing to allow citizen input concerning the loan. Following that hearing, the council will consider a resolution to initiate the loan application process.

Comments

One Response to “Century Considers Loan To Fund Water System Improvements”

  1. Jay on April 22nd, 2009 2:12 pm

    10 grand just to apply for a loan? Well sign us up, Not!!!!!

Written by William Reynolds · Filed Under News